- Cognizant cuts its FY adjusted EPS forecast to $4.56 – $4.64, previously $4.62 – $4.70.
- Analysts estimated FY adjusted EPS at $4.65.
- Cognizant now expects revenue for the fiscal year between $19.5 billion and $19.8 billion, up from $19.3 billion to $19.5 billion.
- Analysts estimated fiscal year revenue at $19.43 billion.
- The company sees an adjusted operating margin of 15% to 15.2%, down from the previous estimate of 15.3% to 15.5%.
- Analysts estimated the adjusted operating margin at 15.2%.
- For the third quarter, Cognizant forecasts revenue between $4.95 billion and $5.02 billion, previously $4.89 billion to $4.96 billion.
- Analysts estimated third quarter revenue at $4.93 billion.
- Cognizant closed the purchase of Belcan.
- Guidance has been updated to include the impact of Belcan.
- Current stock ratings: 6 buys, 20 holds, 2 sells.
Cognizant Tech Solutions A on Smartkarma
Analyst coverage of Cognizant Tech Solutions A on Smartkarma reveals insights from Baptista Research. In one report titled, “Cognizant Technology Solutions: Increased Focus on Large Deal Acquisitions To Grow The Top-Line Inorganically! – Major Drivers,” the analysis highlights the company’s performance for the second quarter of 2024. The report mentions strategic acquisitions and operational efficiency driving better-than-expected revenue and margin figures. Despite a year-over-year revenue decline and industry sector pressures, Cognizant saw a positive sequential growth in constant currency, reaching $4.85 billion in revenue.
Another report by Baptista Research, “Cognizant Technology Solutions: Are Its AI Investments Coming In Too Late? – Major Drivers,” discusses the company’s progress in the first quarter of 2024. Despite facing challenges in the demand environment, Cognizant demonstrated revenue growth exceeding guidance range and improved adjusted operating margin year-over-year. However, the report notes a flat sequential revenue and a year-over-year decline of 1% on reported and constant currency bases. These insights provide a comprehensive overview of Cognizant’s financial health and operational performance as analyzed by independent analysts on Smartkarma.
A look at Cognizant Tech Solutions A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores, Cognizant Tech Solutions A shows a promising long-term outlook. With solid scores across various factors, including Growth, Resilience, and Momentum, the company appears well-positioned for future success. Cognizant Tech Solutions A‘s focus on value, combined with a moderate dividend score, suggests a balanced approach to generating returns for investors.
Cognizant Technology Solutions Corporation, known for its custom IT consulting and technology services, has a strong foothold in the market. With core competencies in technology strategy consulting, systems development, software implementation, and data analytics, the company exemplifies a strategic player in the IT sector. Overall, the Smart Scores indicate a positive outlook for Cognizant Tech Solutions A, pointing towards potential growth and resilience in the evolving tech landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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